The Indian Share Market Showed a very bullish rally today.
What exactly happened today in the market?
Why did that big rally happen today?
How could have we known about this rally in advance?
Allow me to answer all your questions.
First thing first, if you are a regular reader of my post then you would have probably known what just happened today.
In the previous post, I told you that the Share Market is near its trendline and if that trendline breaks then it will go to the zone that I have mentioned.
And that’s what happened today.
See there is one thing that you can be sure of in the market that you can never be sure of in this market. You can only make plans and points in the market. And as long as your plan goes you keep going in the flow.
But if the plan fails you exit your position and make new plans.
That’s what I told you in the previous post. I gave you two scenarios about how the market can move.
And one of the scenarios worked perfectly well.
The market broke the trendline and touched our zone. But did not cross it.
So what can possily happen tomorrow?
Let’s take a look at today’s chart.
I don’t think there is much to say about today’s market.
Since the first candle, the Market showed us what could we expect today but no one would have thought that the market will show us this kind of rally.
But the first candle broke the trendline and I was certain about my study. And that’s what happened. Today’s market made me very happy.
To know about tomorrow, let’s take a look at the chart in a 1-Day time Frame.
The main thing to notice is that market closed at the zone.
Which can tell us that there was some rejection in that zone that stopped the market from going up.
Due to which we can estimate that market will still respect that resistance level and come down a little.
There is one more theory that can confirm this statement.
Today many investors and traders took buy trade and that’s why the market went so high.
So what I am trying to say is that those who bought today will take profit someday.
Many of those investors and traders will think of exiting their positions tomorrow and that can also be the reason for small bearish movement in the market.
If the market still shows some positive sentiment then wait for the zone to break and take a retest. If after retest market makes a green candle then you can surely take a bullish trade.
Otherwise, just look for entry according to trendlines that we will create tomorrow in the live market.
If you have any suggestions, complaints or thoughts do let me know in the comments. I would love to hear from you.
See you next time.
Keep calm and keep learning.